PRP Sells Sequoia Plaza in Arlington to Boyd Watterson for $204M

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Real estate investment firm PRP has sold Sequoia Plaza in Arlington, Va., for $204 million, as part of its strategy to sell off office properties and acquire $2 billion in industrial and data center assets. 

Boyd Watterson Asset Management has acquired the three-building, 370,000-square-foot office complex. 

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Washington D.C.-based PRP acquired the property in 2008 from Foulger-Pratt for $152 million.

“We felt that with the lease term remaining on the assets, it was going to get the widest audience,” Paul Dougherty, PRP’s president and chief investment officer, told Commercial Observer. “Plus, given the interest rates and the wide appeal of single-tenant, net-lease deals right now, it was the right time to sell.”

Located directly off the intersection of Washington Boulevard and Route 50, the property is just minutes away from the Metro’s Clarendon station.

The buildings are currently occupied by the Arlington County Department of Human Services, with a lease that runs through 2030, and Arlington Public Schools, with a lease until 2032. Both leases have 2.5 annual escalations. 

This was just one of four deals announced by PRP as it unloads its office assets. 

The company also sold a 204,000-square-foot office building and 131,000-square-foot lab in Austin, Texas, that are currently occupied by The 3M Company.

PRP also made arrangements to sell Two Washingtonian Center, a 294,000-square-foot office building in Gaithersburg, Md., and a 1.1 million-square-foot office building that serves as the headquarters of Pioneer National Resources in Dallas, Texas.

Buyers and sales prices were not disclosed for any of the three deals. 

“It all ties into the same strategy that we have been deploying,” Dougherty said. “We know these assets and our strategy is immune from COVID, because they are all mission-critical buildings that we have been acquiring. We’re just looking to sell some assets and redeploy with these other sectors.”

He also revealed that PRP is acquiring two portfolios in the industrial sector and land in Loudon County as well.

Keith Loria can be reached at kloria@commercialobserver.com.